New Laws on Overtime in the U.S.

***New Update from the DOL*** As of November 22nd, a court’s decision in Texas has blocked the DOL’s Overtime Rule. As of now, this new rule will NOT take effect in December. More information to come soon.

In less than thirty days, all employers will need to manage their labor force under the new Department of Labor standards related to the new overtime rule.

The DOL will implement monumental changes to the overtime rule that will make approximately 4.2 million employees now eligible for overtime effective, December 1, 2016. The key changes include a higher salary threshold for those considered Exempt-level positions. Employees who do not currently earn at least $47, 476 a year ($913/week) and are currently classified as Exempt/ Salaried employees, will now need to be reclassified as Hourly/Non-Exemptunder the FLSA Overtime rule.

This means they will now be eligible for overtime pay for hours worked over 40 hours/week. This even applies to those in management or professional classifications.

The Department of Labor will also increase this salary threshold every three years. The next update to salary level will be in January 2020.

All employers must comply with the new regulations by December 1, 2016.

The first step in preparing for these changes is to analyze your existing employee salary levels and compensation structure and contact your HR professional to assist in this process.